https://www.taxtmi.com/caselaws?id=8495 Legal expenses incurred in civil litigation arising from intra-group disputes among managing agency partners were not treated as deductible business expenditure where the outlay was aimed at protecting private interests rather than the company's business or assets. The same principle was applied to costs of a writ petition challenging the appointment of an authorised controller: deduction was denied because the expenditure was not shown to have a direct business nexus or to have been incurred wholly and exclusively for the company's business. The stated rule is that, under section 10(2)(xv) of the Indian Income-tax Act, 1922, an expense must have a direct and substantial connection with the assessee's business to qualify as a revenue deduction. en-us Fri, 26 Feb 1971 00:00:00 +0530 Mon, 27 Apr 2009 15:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8495 Legal expenses incurred in civil litigation arising from intra-group disputes among managing agency partners were not treated as deductible business expenditure where the outlay was aimed at protecting private interests rather than the company's business or assets. The same principle was applied to costs of a writ petition challenging the appointment of an authorised controller: deduction was denied because the expenditure was not shown to have a direct business nexus or to have been incurred wholly and exclusively for the company's business. The stated rule is that, under section 10(2)(xv) of the Indian Income-tax Act, 1922, an expense must have a direct and substantial connection with the assessee's business to qualify as a revenue deduction. Case-Laws Income Tax Fri, 26 Feb 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8495